Mortgage Calculator
Understand what a home really costs
A mortgage is the largest financial commitment most people ever make. This calculator shows your monthly payment, total interest over the life of the loan, and the true cost of your home — factoring in price, down payment, rate, and term. Adjust any variable and see the impact instantly.
Sample breakdown
Estimated monthly payment
$1,771
$350K home · 20% down · 6.5% · 30 yrs
What drives your mortgage cost
Four variables determine how much you'll pay. Understanding each one saves thousands.
Interest rate
A 1% difference on a $300K loan adds over $60K in interest over 30 years. Shopping rates is the single most profitable hour you'll spend.
Down payment
20% down eliminates PMI (private mortgage insurance), saving $100-300/month. Below 20%, lenders require insurance that protects them, not you.
Loan term
A 15-year term cuts total interest by ~60% versus 30 years, but doubles monthly payments. The tool shows the exact tradeoff at your numbers.
Home price
Lenders use the 28/36 rule: housing ≤28% of gross income, total debt ≤36%. The calculator estimates the income needed for your target home.
How your loan evolves over time
Mortgage payments aren't flat — the principal-to-interest ratio shifts dramatically across the term.
Building equity
Early payments go mostly to interest. Only 15-20% of each payment reduces your principal in these years.
The tipping point
Around year 12 of a 30-year loan, you start paying more toward principal than interest each month.
Equity acceleration
In the final years, 85%+ of each payment goes to principal. Your equity grows fastest right before payoff.
Loan Parameters
Monthly Payment
Total Interest
Total Cost
Affordability Note
Generally, your monthly mortgage payment should not exceed 28% of your gross monthly income. Based on this payment, an ideal gross monthly income would be around $6,321.
Payment Summary
- Loan Amount:$280,000
- Down Payment %:20.0%
- Total Payments:360
Monthly
Interest
Cost
Payment Summary
Affordability
28% rule: income should be ~$6,321/mo
Making one extra payment per year toward principal on a 30-year $300K loan at 6.5% cuts 4.5 years off your term and saves $58,000 in interest. The calculator shows your base numbers — this strategy accelerates them significantly.
Know your numbers before you talk to a lender
Enter the home price, what you can put down, and the rate you've been quoted. See the real cost in seconds.